What is Lean ?

Lean Creates value for customers by minimizing waste.

Lean process is
Faster,
More efficient,
Delivers satisfactory quality to customers.
How can one increase V or Value
Four Ways:
LEAN METHOD MODEL

LEAN focuses on simplifying complexity and providing right product in the right
amount at right time.
Five Lean Principles:

1. Define Value

To better understand the first principle of defining customer value, it is important to

understand what value is. Value is what the customer is willing to pay for. It is
paramount to discover the actual or latent needs of the customer. Sometimes
customers may not know what they want or are unable to articulate it. This is especially
common when it comes to novel products or technologies. There are many techniques
such as interviews, surveys, demographic information, and web analytics that can help
you decipher and discover what customers find valuable. By using these qualitative and
quantitative techniques you can uncover what customers want, how they want the
product or service to be delivered, and the price that they afford.

Value. Value is always defined by the customer’s needs for a specific

product. For example, what is the timeline for manufacturing and
delivery? What is the price point? What are other important
requirements or expectations that must be met? This information is
vital for defining value.
2. Map the Value Stream

The second Lean principle is identifying and mapping the value stream. In this step, the
goal is to use the customer’s value as a reference point and identify all the activities that
contribute to these values. Activities that do not add value to the end customer are
considered waste. The waste can be broken into two categories: non-valued added but
necessary and non-value & unnecessary. The later is pure waste and should be
eliminated while the former should be reduced as much as possible. By reducing and
eliminating unnecessary processes or steps, you can ensure that customers are getting
exactly what they want while at the same time reducing the cost of producing that
product or service.

Value stream. Once the value (end goal) has been determined, the
next step is mapping the “value stream,” or all the steps and
processes involved in taking a specific product from raw materials and
delivering the final product to the customer. Value-stream mapping is
a simple but eye-opening experience that identifies all the actions that
take a product or service through any process. That process can be in
design, production, procurement, HR, administration, delivery, or
customer service. The idea is to draw, on one page, a "map" of the
flow of material/product through the process. The goal is to identify
every step that does not create value and then find ways to eliminate
those wasteful steps. Value-stream mapping is sometimes referred to
as process re-engineering. Ultimately this exercise also results in a
better understanding of the entire business operation.
3. Create Flow

After removing the wastes from the value stream, the following action is to ensure that
the flow of the remaining steps run smoothly without interruptions or delays. Some
strategies for ensuring that value-adding activities flow smoothly include: breaking down
steps, reconfiguring the production steps, leveling out the workload, creating cross-
functional departments, and training employees to be multi-skilled and adaptive.

4. Establish Pull

Inventory is considered one of the biggest wastes in any production system. The goal of
a pull-based system is to limit inventory and work in process (WIP) items while ensuring
that the requisite materials and information are available for a smooth flow of work. In
other words, a pull-based system allows for Just-in-time delivery and manufacturing
where products are created at the time that they are needed and in just the quantities
needed. Pull-based systems are always created from the needs of the end customers.
By following the value stream and working backwards through the production system,
you can ensure that the products produced will be able to satisfy the needs of
customers.

5. Pursue Perfection

Wastes are prevented through the achievement of the first four steps: 1) identifying
value, 2) mapping value stream, 3) creating flow, and 4) adopting a pull system.
However, the fifth step of pursuing perfection is the most important among them all. It
makes Lean thinking and continuous process improvement a part of the organizational
culture. Every employee should strive towards perfection while delivering products
based on the customer needs. The company should be a learning organization and
always find ways to get a little better each and every day.
Heijunka?
For example, if your average demand is 20 orders per week, but the number fluctuates by
the day (e.g., Mon 3; Tue 10; Wed 5; etc.), it would be wise to implement Heijunka to level
the production by volume.
JIDOKA
By definition, Jidoka is a Lean method that is widely adopted in manufacturing and product
development. Also known as autonomation, it is a simple way of protecting your company
from delivering products of low quality or defects to your customers while trying to keep up
your takt time.
Jidoka relies on 4 simple principles to ensure that a company would deliver defect-free
products:

1. Discover an abnormality
2. Stop the process
3. Fix the immediate problem
4. Investigate and solve the root cause

These 4 steps can be applied in various ways depending on your industry and can serve as
a steady foundation for achieving continuous improvement of your process.
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